The U.S. dollar fell sharply in late trading on Friday, erasing its gains of a 19-month high last Friday, as investors have kept a close eye on the Federal Reserve's policy meeting on Dec. 18-19.

Bets are increasing that the U.S. central bank will push through its interest rate hikes for the fourth time this year. Yet analysts said that the focus has turned onto how Fed would set its pace of further tightening amid the ongoing global trade tensions and market uncertainty.

The British pound bounced on Monday following a tumble on Friday, as British Prime Minister Tereasa May set a second vote in parliament on her postponed and strongly-opposed Brexit plan in the week beginning Jan. 14.

Facing deadlock in parliament, May's planned Brexit deal has spurred broad market volatility. As the deal sets out the terms of the UK-EU divorce that will reshape future bilateral relations, analysts cautioned that a potential no-deal Brexit is likely to thrust the British economy onto a hard landing.

In late New York trading, the euro was up to 1.1350 dollars from 1.1303 dollars in the previous session, and the British pound was up to 1.2629 dollars from 1.2579 U.S. dollars in the previous session. The Australian dollar was down to 0.7177 dollar from 0.7178 dollar.

The U.S. dollar bought 112.75 Japanese yen, lower than 113.29 Japanese yen of the previous session. The U.S. dollar fell to 0.9925 Swiss franc from 0.9977 Swiss franc, and it rose to 1.3408 Canadian dollars from 1.3374 Canadian dollars.